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Superior Energy Services, Inc. Announces Third Quarter 2002 Results

HARVEY, La.--(BUSINESS WIRE)--Nov. 6, 2002--Superior Energy Services, Inc. (NYSE: SPN) today announced results for the third quarter ended September 30, 2002. For the quarter, revenues were $107.2 million resulting in net income of $1.9 million or $0.03 diluted earnings per share, as compared to revenues of $128.6 million and net income of $16.3 million or $0.24 diluted earnings per share, exclusive of goodwill amortization, for the third quarter of 2001.

For the nine months ended September 30, 2002, revenues were $324.8 million and net income was $16.3 million or $0.22 diluted earnings per share, as compared to revenues of $329.5 million and net income before cumulative effect of change in accounting principle of $43.5 million or $0.62 diluted earnings per share, exclusive of goodwill amortization, for the nine months ended September 30, 2001.

President and CEO Terry Hall Comments

President and CEO Terry Hall commented, "As we previously announced, third quarter activity was impacted by four tropical weather systems, which shut down a significant part of our operations in September, effectively negating much of the earnings from the prior months during the quarter. In October, most of our businesses returned to pre-storm activity levels. In addition, we have seen incremental activity as a result of storm-related projects, particularly for liftboats. We expect the fourth quarter to be substantially better than the third quarter, assuming storm-related work continues throughout the period."

Well Intervention Group Segment

Third quarter revenues for the Well Intervention Group were $36.1 million, a 10% decrease from the second quarter of 2002. Activity decreased for most well intervention services, including well control, hydraulic workover and mechanical wireline services as compared to the second quarter of 2002. This was partially offset by increased activity for electric line, pumping and stimulation and plug and abandonment services.

Rental Tools Segment

Revenues for the Rental Tools segment were $29.4 million, unchanged as compared to the second quarter of 2002. Rentals for stabilizers and handling tools increased slightly relative to the second quarter of 2002, while drill pipe, on-site accommodations and other downhole related tools were relatively flat.

Marine Segment

Superior's marine revenues were $14.3 million, a 19% decrease as compared to the second quarter of 2002. Utilization was down across all classes as a result of weather. September utilization was 38%. By contrast, utilization in July was 66% and in August it was 73%.


        Liftboat Average Dayrates and Utilization by Class Size
                 Three Months Ended September 30, 2002
                              ($ actual)

Class                Liftboats     Average Dayrate     Utilization
105'                     8            $ 2,611             69.3%
120-135'                 8              3,216             69.2%
145-155'                11              5,662             54.4%
160'-175'                6              6,474             56.0%
200'                     4              8,629             55.6%
230'-245'                2             14,771             11.4%
250'                     2             15,807             76.0%

Other Oilfield Services Segment

Revenues in this segment were $27.4 million, a 7% increase as compared to the second quarter of 2002 due primarily to increased activity for waste disposal, field management, and construction and fabrication projects.

The Company will host a conference call at 10 a.m. Central Time (11 a.m. Eastern Time) today. The call can be accessed from Superior's website at www.superiorenergy.com, or by telephone at 800-763-5557. The replay telephone number is 800-642-1687 and the replay passcode is 6447217. The replay is available beginning two hours after the call and ending November 11, 2002.

Superior Energy Services, Inc. provides a broad range of specialized oilfield services and equipment primarily to major and independent oil and gas companies engaged in the exploration, production and development of oil and natural gas properties offshore in the Gulf of Mexico and throughout the Gulf Coast region. These services and equipment include the rental of liftboats, rental of specialized oilfield equipment, electric and mechanical wireline services, well plug and abandonment services, coiled tubing services and engineering services. Additional services provided include contract operating and supplemental labor, offshore construction and maintenance services, offshore and dockside environmental cleaning services, the manufacture and sale of drilling instrumentation and the manufacture and sale of oil spill containment equipment.

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which involve known and unknown risks, uncertainties and other factors. Among the factors that could cause actual results to differ materially are: volatility of the oil and gas industry, including the level of exploration, production and development activity; risks associated with the Company's rapid growth; changes in competitive factors and other material factors that are described from time to time in the Company's filings with the Securities and Exchange Commission. Actual events, circumstances, effects and results may be materially different from the results, performance or achievements expressed or implied by the forward-looking statements. Consequently, the forward-looking statements contained herein should not be regarded as representations by Superior or any other person that the projected outcomes can or will be achieved.


           SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
                Consolidated Statements of Operations
       Three and Nine Months Ended September 30, 2002 and 2001
          (in thousands, except earnings per share amounts)
                             (unaudited)


                               Three Months Ended   Nine Months Ended
                                  September 30,       September 30,
                               ------------------- -------------------
                                 2002     2001(A)    2002     2001(A)
                               --------- --------- --------- ---------

Revenues                       $107,213  $128,606  $324,769  $329,501
                               --------- --------- --------- ---------

Costs and expenses:
  Cost of services               67,136    67,876   188,514   171,913
  Depreciation and
   amortization                  10,295     8,966    30,273    23,864
  General and administrative     21,279    20,265    63,918    51,991
                               --------- --------- --------- ---------

     Total costs and expenses    98,710    97,107   282,705   247,768
                               --------- --------- --------- ---------

Income from operations            8,503    31,499    42,064    81,733

Other income (expense):
  Interest expense               (5,557)   (6,035)  (16,287)  (14,581)
  Interest income                   105       431       430     1,483
  Equity in income of
   affiliates                       113         -       258         -
                               --------- --------- --------- ---------

Income before income taxes and
 cumulative effect of change
 in accounting principle          3,164    25,895    26,465    68,635

Income taxes                      1,218    10,616    10,189    28,140
                               --------- --------- --------- ---------

Income before cumulative
 effect of change in    
 accounting principle             1,946    15,279    16,276    40,495

Cumulative effect of change in
 accounting principle, net of
 income tax expense                   -         -         -     2,589

                               --------- --------- --------- ---------
Net income                       $1,946   $15,279   $16,276   $43,084
                               ========= ========= ========= =========

Basic earnings per share:
  Earnings before cumulative
   effect of change in
   accounting principle           $0.03     $0.22     $0.22     $0.59
  Cumulative effect of change
   in accounting principle            -         -         -      0.04
                               --------- --------- --------- ---------
  Earnings per share              $0.03     $0.22     $0.22     $0.63
                               ========= ========= ========= =========

Diluted earnings per share:
  Earnings before cumulative
   effect of change in
   accounting principle           $0.03     $0.22     $0.22     $0.58
  Cumulative effect of change
   in accounting principle            -         -         -      0.04
                               --------- --------- --------- ---------
  Earnings per share              $0.03     $0.22     $0.22     $0.62
                               ========= ========= ========= =========

Weighted average common shares
 used in computing earnings
 per share:
    Basic                        73,765    68,668    72,615    68,309
                               ========= ========= ========= =========
    Diluted                      74,543    69,379    73,634    69,460
                               ========= ========= ========= =========

(A) Earnings per diluted share before cumulative effect of change in
 accounting principal, excluding goodwill amortization, net of taxes,
 was $0.24 and $0.62 for the three and nine months ended September 30,
 2001, respectively (SFAS 142)


           SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
                     CONSOLIDATED BALANCE SHEETS
               SEPTEMBER 30, 2002 AND DECEMBER 31, 2001
                            (in thousands)

                                               09/30/2002  12/31/2001
                                               (Unaudited)  (Audited)
                                               ----------- -----------
ASSETS

Current assets:
  Cash and cash equivalents                      $  4,666    $  3,769
  Accounts receivable - net                        96,499     109,835
  Income taxes receivable                           5,575      11,694
  Escrowed funds                                   10,734           -
  Prepaid insurance and other                      14,821      10,181
                                               ----------- -----------

        Total current assets                      132,295     135,479

Property, plant and equipment - net               403,932     345,878

Goodwill - net                                    156,716     148,729
Notes receivable                                        -      23,062
Investments in affiliates                          12,756           -
Other assets - net                                  7,432      12,372
                                               ----------- -----------

        Total assets                             $713,131    $665,520
                                               =========== ===========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable                               $ 18,861    $ 34,843
  Accrued expenses                                 33,861      26,841
  Deferred income taxes                               102         510
  Current maturities of long-term debt             14,168      16,727
                                               ----------- -----------

        Total current liabilities                  66,992      78,921
                                               ----------- -----------

Deferred income taxes                              63,850      47,390
Long-term debt                                    253,304     269,633

Total stockholders' equity                        328,985     269,576
                                               ----------- -----------

        Total liabilities and stockholders'
         equity                                  $713,131    $665,520
                                               =========== ===========


           Superior Energy Services, Inc. and Subsidiaries
                          Segment Highlights
  Three months ended September 30, 2002 and 2001, and June 30, 2002
                             (Unaudited)
                            (in thousands)

Revenue                    September 2002   June 2002   September 2001
                          --------------- ------------- --------------
Well Intervention Group          $36,115       $40,186        $52,179
Marine                            14,326        17,760         21,351
Rental Tools                      29,401        29,310         32,635
Other Oilfield Services           27,371        25,474         22,441
                          --------------- ------------- --------------
Total                           $107,213      $112,730       $128,606

Gross Profit

Well Intervention Group          $11,701       $17,904        $23,972
Marine                             2,870         6,799         10,970
Rental Tools                      20,028        20,110         21,081
Other Oilfield Services            5,478         5,777          4,707
                          --------------- ------------- --------------
Total                            $40,077       $50,590        $60,730

CONTACT:
Superior Energy Services Inc., Harvey
Terence Hall, Robert Taylor, or Greg Rosenstein
504/362-4321
www.superiorenergy.com